17 Oct 2016

How Are Personal Property and Real Estate Tax Different

How Are Personal Property and Real Estate Tax Different

A very frequent error made in the judgement of the types of property tax is that the real estate and personal property tax is one and the same thing. However, the truth is that the personal property tax is a completely separate entity of taxation, and hence the treatment and accounting of it has to be done from an entirely different perspective.

The Real Estate Tax does not include the word personal before it and hence it should be clear that it does not refer to your personal property always. It could be a commercial real estate property as well. The basic concept behind a real estate tax is that you pay money for an immovable property such as the land and the structure built on it. This structure can be anything; it does necessarily have to be a house.

The real estate tax, as the ace attorney of America Blake Rubin, can educate in an elaborate way, is applicable for homes as well commercial buildings or whatever other structure is built on the particular property, but that has to have a permanent location. It is because of this permanence of location that it is referred to as an immovable property.

If this real estate property is owned directly by you then you will need to pay regular tax to your local tax assessor. Alternatively, it can be included in your mortgage payment and in that case you will be paying every month indirectly. There is a possibility of occurring changes in the payment system depending on the administrative system of your locality, hence it is always best to be updated with the changes.

Now, personal property refers to all your assets that are not immovable, that means they are movable. This too like the real estate tax is susceptible to change depending on the workings of the local authority and thus, it is important for you to keep in touch with your attorney all the time. Blake Rubin is a highly acclaimed attorney reputed for being excellent in his dealings with real estate and partnership issues. He is so highly praised that the Chambers USA described him as a ‘masterful attorney’ whose dealings are par excellence. He has authored more than 180 professional articles and is even a lecturer on tax.  He is said to be one of the best in tax structuring too and holds a reputation for being involved deeply in the Tax Reform Act of 1986

As for personal tax, it covers everything from your mobile homes, to your vehicles, to your jewellery, your boats or even airplanes, if you have any. This also, like the real estate tax is paid annually. It is important to remember that any property that you own that can be taken from one place to another falls under the category of personal property tax.

It is true that both these taxes are quite similar in some respects such as the variation in its tax amount based on the value of the property, but that should not become the cause for misunderstanding the two as the same thing.

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